Widening Net LossesSharp deterioration in EBIT and net margins reflects rising costs, pricing or operational issues that weaken retained earnings. Persistent losses erode equity, limit self-funding of growth, and increase reliance on external capital, elevating structural risk over the medium term.
Negative Free Cash FlowSustained negative free cash flow despite positive EBITDA signals heavy capex and weak cash conversion. Over months this raises refinancing and liquidity risk, constrains organic reinvestment, and forces dependence on asset sales or external funding to support expansion and debt servicing.
High LeverageElevated debt-to-equity and rising absolute debt increase interest and refinancing exposure. High leverage magnifies earnings volatility, limits balance-sheet flexibility for new projects, and raises risk if market financing conditions tighten, making long-term growth more dependent on deleveraging.